PMI shows Eurozone business growth rose the fastest in four years

By FXStreet FXStreet (Mumbai) – With the ECB expected to announce a slash in interest rate further into the negative territory and boost QE, the Markit Eurozone PMI rose to 54.4 from 53.9 in October, according to the ‘flash’ reading. This is the fastest rate of expansion of output since May 2011.

Weaker euro led to a pick-up in business activity

Euro zone businesses reported the fastest rates of growth in business activity and employment in four-and-a-half years in November. The surveys reported that the Manufacturing PMI rose to 52.8 from 52.3, a 19 month high while the Service PMI rose to 54.6 from 54.1, a 54 month high. Employment, new orders and backlogs of work indicators all signalled the strongest monthly expansions in four-and-a-half years.

Weaker euro was the primary factor that led to the pick-up in the bloc as weak euro made it cheaper for foreign buyers to purchase goods and services.

The recovery was primarily e led by the service sector. Business activity and new business in this sector rose at the fastest rates since May 2011 while employment showed the biggest monthly gain for five years.

Manufacturing output growth was also impressive. New export orders for manufactured goods increased at …read more

Source:: FX Street